“This argument calls to mind the adage that no good deed goes unpunished. As petitioner acknowledges, SO X offered the suggestion of CNC status only after petitioner had represented that he could not afford the cost of having the missing tax returns professionally prepared. SO X mentioned this option as a possible solution to petitioner’s problem; this suggestion was clearly not the cause of petitioner’s problem. SO X’s suggestion would not have halted petitioner in his tracks if he were actually making progress in assembling the documents required for consideration of an OIC or an installment agreement. Petitioner found this suggestion attractive because he was not making such progress.

“The documentation that SO X requested in order to consider petitioner for CNC status was quite basic–copies of his bank account statements and pay- stubs and evidence of his monthly rent expense. SO X ultimately gave petitioner five weeks to submit these documents, a period that we find reasonable. Petitioner tries to lay at SO X’s door the blame for his failure to submit the required documents, urging that the SO erred by not ‘following up.’ But petitioner waited until two weeks after the initial deadline had passed before contacting SO X, citing ‘printer problems’ and promising to fax the documents within the next two days. He failed to deliver them within the next four weeks.

“We reject petitioner’s suggestion that an IRS settlement officer has an affirmative duty to check up on a taxpayer who fails to make good on his own promise to submit documentation required to consider a collection alternative.” 2017 T. C. Memo. 13, at pp. 10-11. (Name omitted).

An author, teacher, advocate and trusted advisor, Lew Taishoff is a New York City-based attorney with 51 years of experience in corporate and individual tax and real estate matters. He is an Enrolled Agent, examined and admitted to practice before the Internal Revenue Service, and admitted to practice before the United States ... Continue reading →